Fast-GROWING financial advisory firm Towry Law is eyeing more acquisitions in Scotland as part of its expansion.

The company, which uses wealth management techniques for the middle market and charges fees instead of commission, only snapped up St Andrews firm McGowans last week.

But Towry is already in talks with other IFAs across the country and is keen to expand its portfolio.

Andy Cowan, head of private clients, admitted discussions with other firms were ongoing.

He said: "We are having almost weekly discussions with IFAs. We are very acquisitive but we are not being particularly pro-active. IFAs, regardless of what they say publicly, are approaching us all the time as a sort of lifeboat strategy.

"Scotland is now one of the strongest parts of our business and it is growing all the time.

"John McGowans will not be the last Scottish business. I think there will be a number more of them. Across the UK we are talking to around a dozen firms.

"There are a few other IFAs around Scotland which we are in active discussions with and they may or may not come to anything.

"These are businesses which span the range from £500,000 to £5million turnover businesses," he said.

The fees model Towry uses is at odds with traditional IFA payments through commission-based advice.

But Cowan believes regulation to make the industry more fee-based is on the way.

Results from the Retail Distribution Review by the Financial Services Authority are eagerly awaited next year.

Cowan said: "The Association of British Insurers is starting to say change is coming, so it is not just us banging on about it.

"If anything, the Scottish market is quite forward-looking and is prepared to say change is coming and what should we do about it.

"The difficulties in the market are: 'I am a small, very good IFA but how can I transition my business to be genuinely independent of product suppliers?'

"This is becoming the new definition of what it means to be independent.

"It is difficult for a small business to build the infrastructure, have the capital to invest, the transition to fees.

"We believe that a fee-based wealth advice service is the only way that individual and corporate clients can ensure they are receiving truly independent advice."

Towry Law has more than 35 staff operating from offices in Glasgow, Edinburgh, St Andrews and Aberdeen.

Profits increased 60 per cent in the last year with assets under management doubling to £2bn.

Revenues have risen from £10m three years ago to £55m in its latest accounts.

'We're not being especially pro-active. IFAs, regardless of what they may say publicly, are approaching us all the time'